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IRS awards Equifax no-bid, $7.25 million contract after hack

04 Octobre 2017

The company at the center of the biggest breach of personal information just signed a contract with the federal government to provide, well, personal information.

Smith stepped down in the wake of breach last month.

This action was to establish an order for third party data services from Equifax to verify taxpayer identity and to assist in ongoing identity verification and validations needs of the Service.

The Internal Revenue Service has hired Equifax to verify taxpayers' identities in a $7.25 million contract in which the government didn't consider other bidders, despite the company's involvement in a data breach that impacted 145 million people, the IRS confirmed Tuesday.

FILE - This July 21, 2012, file photo shows signage at the corporate headquarters of Equifax Inc.in Atlanta.

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Richard Smith, former chairman and chief executive officer of Equifax Inc., pauses after speaking during a House Energy and Commerce Committee hearing in Washington, D.C., U.S., on Tuesday, Oct. 3, 2017.

FILE - A customer uses a credit card at a coffee shop in Boston, Aug. 12, 2016.

Equifax, a credit reporting bureau, exposed a breathtaking amount of highly sensitive data to hackers-full names, Social Security numbers, birthdates, addresses, and, in some cases, driver's license numbers.

Equifax is also facing a number of state and federal probes related to the hack. Published by the Department of the Treasury on September 30, the contract is a "sole source order" as IRS didn't ask for any competitive bids. He requested that the agency share with him the materials used to justify the awarding of the contract.

IRS awards Equifax no-bid, $7.25 million contract after hack